BRIDGEMARQ REAL ESTATE SERVI (BRE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:BRE - CA10808B1085 - Common Stock
14.09 CAD
+0.02 (+0.14%)
We assign a fundamental rating of 4 out of 10 to BRE. BRE was compared to 32 industry peers in the Real Estate Management & Development industry. BRE has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, BRE is valued expensive at the moment. Finally BRE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- BRE had negative earnings in the past year.
- BRE had a positive operating cash flow in the past year.
- Of the past 5 years BRE 4 years were profitable.
- BRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -5.92%, BRE is doing worse than 68.75% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 150.13%, BRE belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- BRE had an Average Return On Invested Capital over the past 3 years of 229.29%. This is significantly above the industry average of 10.66%.
- The last Return On Invested Capital (150.13%) for BRE is well below the 3 year average (229.29%), which needs to be investigated, but indicates that BRE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.92% | ||
| ROE | N/A | ||
| ROIC | 150.14% |
ROA(3y)9.5%
ROA(5y)7.08%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)229.29%
ROIC(5y)142.6%
1.3 Margins
- BRE's Operating Margin of 3.23% is on the low side compared to the rest of the industry. BRE is outperformed by 71.88% of its industry peers.
- In the last couple of years the Operating Margin of BRE has declined.
- BRE has a Gross Margin of 98.42%. This is amongst the best in the industry. BRE outperforms 100.00% of its industry peers.
- BRE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.23% | ||
| PM (TTM) | N/A | ||
| GM | 98.42% |
OM growth 3Y-51.34%
OM growth 5Y-33.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.2%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BRE is creating value.
- BRE has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for BRE remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, BRE has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.43, we must say that BRE is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.43, BRE is doing worse than 78.13% of the companies in the same industry.
- BRE has a debt to FCF ratio of 26.00. This is a negative value and a sign of low solvency as BRE would need 26.00 years to pay back of all of its debts.
- BRE has a Debt to FCF ratio (26.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 26 | ||
| Altman-Z | 0.43 |
ROIC/WACC16.46
WACC9.12%
2.3 Liquidity
- A Current Ratio of 0.38 indicates that BRE may have some problems paying its short term obligations.
- BRE's Current ratio of 0.38 is on the low side compared to the rest of the industry. BRE is outperformed by 65.63% of its industry peers.
- BRE has a Quick Ratio of 0.38. This is a bad value and indicates that BRE is not financially healthy enough and could expect problems in meeting its short term obligations.
- BRE has a Quick ratio of 0.38. This is in the lower half of the industry: BRE underperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
- The earnings per share for BRE have decreased strongly by -54.49% in the last year.
- Looking at the last year, BRE shows a very strong growth in Revenue. The Revenue has grown by 58.15%.
- BRE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 51.22% yearly.
EPS 1Y (TTM)-54.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%84.31%
Revenue 1Y (TTM)58.15%
Revenue growth 3Y91.16%
Revenue growth 5Y51.22%
Sales Q2Q%-3.08%
3.2 Future
- The Earnings Per Share is expected to decrease by -7.07% on average over the next years.
- The Revenue is expected to grow by 9.87% on average over the next years. This is quite good.
EPS Next Y-203.7%
EPS Next 2Y-75.15%
EPS Next 3Y-7.07%
EPS Next 5YN/A
Revenue Next Year5.21%
Revenue Next 2Y7.86%
Revenue Next 3Y9.87%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for BRE. In the last year negative earnings were reported.
- BRE is valuated quite expensively with a Price/Forward Earnings ratio of 279.01.
- 68.75% of the companies in the same industry are more expensive than BRE, based on the Price/Forward Earnings ratio.
- BRE is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 279.01 |
4.2 Price Multiples
- BRE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BRE is cheaper than 90.63% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as BRE.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.68 | ||
| EV/EBITDA | 8.53 |
4.3 Compensation for Growth
- A cheap valuation may be justified as BRE's earnings are expected to decrease with -7.07% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-75.15%
EPS Next 3Y-7.07%
5. Dividend
5.1 Amount
- BRE has a Yearly Dividend Yield of 9.59%, which is a nice return.
- BRE's Dividend Yield is rather good when compared to the industry average which is at 2.31. BRE pays more dividend than 96.88% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, BRE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.59% |
5.2 History
- The dividend of BRE has a limited annual growth rate of 0.04%.
- BRE has paid a dividend for at least 10 years, which is a reliable track record.
- BRE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.04%
Div Incr Years1
Div Non Decr Years13
5.3 Sustainability
- The earnings of BRE are negative and hence is the payout ratio. BRE will probably not be able to sustain this dividend level.
DP-137.94%
EPS Next 2Y-75.15%
EPS Next 3Y-7.07%
BRIDGEMARQ REAL ESTATE SERVI / BRE.CA FAQ
What is the ChartMill fundamental rating of BRIDGEMARQ REAL ESTATE SERVI (BRE.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BRE.CA.
What is the valuation status for BRE stock?
ChartMill assigns a valuation rating of 2 / 10 to BRIDGEMARQ REAL ESTATE SERVI (BRE.CA). This can be considered as Overvalued.
What is the profitability of BRE stock?
BRIDGEMARQ REAL ESTATE SERVI (BRE.CA) has a profitability rating of 5 / 10.
What is the financial health of BRIDGEMARQ REAL ESTATE SERVI (BRE.CA) stock?
The financial health rating of BRIDGEMARQ REAL ESTATE SERVI (BRE.CA) is 2 / 10.
Can you provide the dividend sustainability for BRE stock?
The dividend rating of BRIDGEMARQ REAL ESTATE SERVI (BRE.CA) is 7 / 10 and the dividend payout ratio is -137.94%.